The board and chief executive of Barichu Farmers’ Co-operative Society have been ordered to step aside as the government continues to crack the whip on rogue Saccos and Societies.
The order comes just days after Co-operatives and Micro, Small and Medium Enterprises Development (MSMEs) Cabinet Secretary Wycliffe Oparanya vowed to clean up the sector.
While speaking at a special general meeting for Lompasago Sacco over the weekend, the CS decried mismanagement in Saccos that has led to members losing their savings as he promised to crack the whip.
And true to his word, the CS has issued directives to Barichu Farmers Co-operatives Society in Nyeri County due to mismanagement of members’ funds. In a statement issued by his ministry’s communications office, the CS also directed the county director of co-operatives to be the caretaker of the society pending a special annual general meeting slated for September 18, 2024.
The Commissioner of Co-operatives is also to institute an inquiry into the mismanagement at society. Oparanya further directed New KPCU, the farmers’ umbrella co-operative union, to provide money and pay farmers immediately. This is to be supervised by the county director of co-operatives.
“Directing Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC) to step in and investigate the mismanagement of society and charge those found to have misused resources,” read the directives.
Cleaning up Saccos and co-operatives has been one of the tasks the CS has been engaging in since taking office from his predecessor Simon Chelugui who, before being fired when President William Ruto dismissed his entire Cabinet in July, had also issued similar directives to the Kenya Union of Savings and Credit Co-operatives (Kuscco).
The Kussco board was disbanded on May 6 due to alleged fraud more than Sh5 billion that spanned over a decade. The Commissioner for Co-operatives was then directed to appoint an interim board. The decision to disband Kuscco’s board was informed by an audit done by the Commissioner for Co-operatives which showed withdrawals exceeding Sh5 billion between 2013 and 2024 that implicated the managers.
